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LatinNews Daily - 20 October 2021

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In brief: Brazil’s ANP plays down fuel shortage concerns

* Brazil’s Agência Nacional do Petróleo (ANP) has released a statement denying that there is a short-term risk of fuel shortages in the country. “There is no indication of shortages in the national fuel market at this time,” the ANP said. Its statement was prompted by the state-owned oil company, Petrobras, recognising that demand for November exceeds its production capacity. “Only with considerable advance warning will Petrobras be able to prepare itself to meet this atypical demand,” the company said in a statement, adding that “compared with November 2019, demand from diesel distributors is up 20% and up 10% from petrol [distributors]”. The Brazilian association of fuel distributors (Brasilcom) earlier this month accused Petrobras of risking national fuel shortages by making “unilateral cuts” to November orders for petrol and diesel, noting that it is impossible for distributors to compensate these cuts with imports given the current difference in oil prices between the Brazilian and international market, where prices are high. Petrobras has said it is “maximising” its production and delivery capacity, while the ANP has said it is monitoring the supply chain.